Effects of Trade on Growth in Nigeria’s Open Economy: Econometric Analysis - Effetti del commercio internazionale sulla crescita della Nigeria: un’analisi econometrica

Stephen S. Tombofa () and Tari Karimo
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Stephen S. Tombofa: Niger Delta University, Economics Department, Postal: Yenagoa, Nigeria, http://www.ndu.edu.ng/

Economia Internazionale / International Economics, 2014, vol. 67, issue 4, 517-529

Abstract: This study attempted to quantify the relationship between international trade and overall economic performance in Nigeria. Specifically, this study examined the correlation between economic growth and each of export performance and import penetration, as well as the effect of export performance, import penetration and financial deepening on real economic growth in Nigeria using time series data. The use of econometric techniques provided useful results. Real economic growth was significantly positively related to export performance. The correlation between economic growth and import penetration was also positive. However, growth was negatively related to financial deepening. Augmented Dickey-Fuller test results showed economic growth was I(0) whereas import penetration, export performance and financial deepening were I(1), respectively. The empirical results showed that export performance and financial deepening are more important than import penetration in explaining Nigeria’s economic growth in the period spanning 1981-2012. The results have important implications for government and non-government policymakers in Nigeria and foreigners. - Scopo di questo studio è quantificare la relazione tra commercio internazionale e dinamica dell’economia della Nigeria. Specificatamente viene esaminata la relazione tra crescita economica e importazioni ed esportazioni, così come l’effetto delle esportazioni, delle importazioni e della intensità finanziaria sulla crescita della Nigeria, utilizzando dati di serie temporale. L’uso delle tecniche econometriche ha fornito risultati utili. La crescita economica reale è positivamente e significativamente correlata alle esportazioni ed alle importazioni, mentre la correlazione con la intensità finanziaria è negativa. I risultati dei test di Dickey e Fuller mostrano che la crescita economica era I(0), mentre la penetrazione delle importazioni, la performance delle esportazioni e l’intensità finanziaria erano I(1), rispettivamente. I risultati empirici mostrano che l’export e l’intensità finanziaria sono più rilevanti delle importazioni nello spiegare la crescita economica nel periodo 1981-2012. Questi risultati hanno implicazioni importanti per la politica economica sia in Nigeria sia negli altri paesi.

Keywords: Economic Growth; Exports; Imports; Financial Deepening; Unit Roots (search for similar items in EconPapers)
JEL-codes: C01 C22 E13 E51 F41 F43 O47 (search for similar items in EconPapers)
Date: 2014
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